the surety - assurance to the obligee the principal will fulfill obligation

The agreement of the bond is a guarantee that the surety will meet the obligation due to the obligee from the principal if the principal does not meet the obligation. A bond will always protect the obligee, not the principal.

Surety vs. insurance

A surety assures the obligee that the principal will fulfill the contractual obligation.

An insurance policy is a 2-party agreement where the insurer agrees to reimburse the insured as a result of a loss by a designated cause.

Types of Bonds

Contract Bonds

Commercial Surety Bonds

Fidelity Bonds

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